tv Street Signs CNBC May 9, 2013 2:00pm-3:01pm EDT
>> it took just a day for man united to replace its united coach. >> and there you see the trading number. that will do it for power lunch. sue? >> street signs begins now. >> does it really deserve to be an $8 billion company? also in the street signs, garage say the stock market. that is quitely been beating the big caps and raking in the big
bucks. and more detail on the largest bank heist of all time. 45 million bucks gone. >> it's an incredible and reaching a record high for its own. and indeed if it ekes out again by the close, it would be the 13th gain in 15 sessions. >> hitting the high of the day for its stock. the dow jones industrial average reporting that amazon is
developing a smart phone with a 3d screen. do you buy the rumor? will anybody buy that phone if it's true? >> it's hard to say if it would really have a 3d screen. i think it has been speculated for a while. wouldn't be a big surprise with their kindle tablet strategy. amazon has gone after the razor blade strategy. it does make sense in the longer term. hard to say if it will be a 3d feature. >> do you think it's the right strategy for the company? pushing further and further into the hardware space.
>> ultimately we do think that margins could have approached high single digits longer term. and that's being driven by the third party shift and we think we will get some of the operating efficients. >> thank you very much for your thoughts on amazon. >> we will see in just a minute on groupon. get your caffeinated fix. let's get to tas esla now. you know who else is racing? the short sellers away from tesla's stock.
>> explaining why they believed so strongly in the model us. >> this is not a wonderful wonderful electric car. this is a wonderful car. make no mistake. this is the highest rated car, bar none. sedan, gas powered, anything. >> and it is in greater demand. tesla is raising its 2013 production due to that demand. they now expect to deliver at
least 21,000 vehicles this year. this stock has been off to the races more than 100%. now greater than fiat. and they have only sold 4600 times. >> that is a perfect lead-in. you must have been reading my twitter stream. has the market gotten a bit crazy? get a look at this. this is super unscientific. i took the market cap. you compare that to around 44, 22 grand for ford, 29 for toyota.
i think the. >> we got to leave it there. >> which one would you like to start with. >> the stock is soaring so much today. up 27%. what you really have is a situation where a deal with starbucks was announced at the right time. i say the deal trumped the actual fundamentals. what i say is what are they going to do next quarter. they talk.
>> you can't say it wasn't a good quarter. >> perception is reality. >> in the stock market. you are so wrong. because in this case -- >> do you talk to your son like that? >> he doesn't like it when i do. the reality is, brian, is that the numbers tell a very different story than the sfok is telling you right now. >> they don't see any improvement. >> let's take a look at monster as well. >> that's the contrast in the story. >> monster, all you need to do is look at the sales growth. everything else, you look at the numbers and earnings, they popped all sorts of things. the earnings were not what people expected.
the company is hiring. >> nothing has been decided on that, whether or not this needs something changed in labeling. >> i will tell you, talking on this one. he thinks international sales will take a bit of a hit. i have to tell you something. if you look at the growth in european sales, you can say that in the u.s., sales barely budged. >> next up, group on. it's soaring on earnings. have people been wrong about exactly what groupon is? kind of like my question on amazon. is it possible that we don't understand what the company is?
>> it is still a local deals company. we think investors are going to pay for the lower business. so the business is stabilizing. >> he did have tough comps last year. did decline on revenues. it did stabilize a little more. before they really -- before the stock goes higher. >> 7 million mobile downloads. here is my vision. i have got my phone.
>> absolutely the currency has been the strongest driver. but what drove earnings was significant number of asset sales that they were able to record as operating profits. they did about $230 billion in operating profit for the year. on the ordinary shares in japan. the question is, is a lot of that recovery priced in. >> number two in music in europe. actually the number one and number two. you don't see them here. there are a lot of assets at sony.
the problem is they have been undergoing the five or six year restructuring program. so the bull case would be they finished that. the coming years will be operating profits. if you took this company before the yen starts their massive rally, before the financial crisis. zero. they're kind of break even. >> i noticed the financial services was up big. one of the few groups that really was. is sony a quiet financial
services giant? we think of tvs. >> if you actually took financial services and valued it at market, pictures valued at market you probably have 3,000 general stocks. it's hard to get a fundamental grip on the company. as i said, they could probably do almost $400 billion in operating profit. just going back to pre-crisis levels.
it's tougher business today. >> it's up 60% year to date. very quickly. let's take a look at what's happening. >> that's good for sony. >> the weaker the japanese yen, it is very good for all export i ing. >> it's inverted. >> the dollar is getting higher. >> the higher that number goes, the better it is for japanese companies. >> thank you very much. that was excellent. >> the extent of my knowledge as well. he calls it the jamie dimone witch hunt. here to tell us why everybody
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but but. >> in some of the publications. certainly, changed my opinion so to speak. i think the bottom line here on any company is how good is management in general. how good is the business in general. there are obviously period of times of time and certain companies and people. >> that is who could have been an example where they should have split it.
>> you can have very powerful the global crossings. wasn't with the chairman of global crossings. ber knee was not the chairman of world come. jeff skilling was not the chairman of enron. >> i don't mean to jump in on you. thank you very much for your comments. we do have breaking news now. what are you hearing? >> notified investors that it is
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>> high er. >> like shooting up. >> bring up a chart. forget this number here. that's not really the story here. shares took off. right around 11:30 today. the only thing i can find is that scotia capital event last week. >> the only thing i can find on the stock market. >> guess who is getting a downgrade. >> they called the turn around progress lack luster, adding there is an earnings risk because of fashion misses. the target is staying at 27. the stock guesses as market.
>> here is the problem. everybody i know in computer science that i went to school with now works for a cloud computing company. >> amazon is pulling those prices down. >> i have to tell you one thing. there is a beautiful part in the conference call where an analyst says what's the impact of competition and amazon? three paragraphs in the script. going around and around and around. >> a bad connection.
the defensive sectors. what we have seen are the defensive companies and they are delivering shakey outlooks. >> it doesn't pull the market back. everyone i speak to, everyone says it would be very healthy to have a cause or a pull-back. there doesn't seem to be significant enough catalyst to give us a pull back. >> we really need to see bigger macro economic events. we would expect to see some slightly more negative economic data come out in the summer months when the full effect really starts to be felt.
>> 13% of american stockholders vanished over the last call at 8 years. you're saying people are selling bonds. what will happen if we can just get a few percent of the people back interested in the equity market. >> it is happening right now and you will continue to see the market move upwards. >> are you seeing that? are you seeing people saying i haven't owned a stock in ten years but now i'm interested again? >> do you actually see that? >> we do. as an example, i have a client that called me today. he needs the money back within the next 12 months.
>> when conservative investors are trying to get involved in stock markets for short term trades, that could mean that a pull back is shortly had. >> thank you very much. we have got breaking news. one of the most powerful and successful head fund mankers in the world. scott, what is dan saying? >> brian, thanks so much. scott here. >> i got whopner, but it's a good trade. >> at least you had the first name right. he spoke to me on the record when he was done and had the
following things to say. told me that he has been in on the yen trade like so many other investors have. he is still long the nikkei. a huge game changing thing. it has the possibility of really working. thinks the trade has more room to go and that his excitement comes from abe's three arrows initiatives to revitalize japan in terms of a stock. they do have a position in japan tobacco. i asked him about herbalife. moved on to other things. said he initially got into that position because he thought the presentation by bill and the subsequent stock drop was a big overreaction. so dan is no longer in herbalife. he said it was a good one at the levels he got in.
the other trade that has been working for third point and continues to work is long greek debt. he called it a good investment. got in last year. they doubled their money. but clearly the headline as japan has gotten an awful lot of conversation on both sides of the issue from many of the world's greatest investors. dan thinks it's the best idea right now. he has been in on the trade as i said. they are still long the nikkei and thinks that the structural reforms there are a huge game changing thing. presentation is off the record. just a few moments ago. >> dan and kyle are good friends. i know them both and they have conflicting views in japan. kyle bass is about as negative
on japan as an investor could be. he makes no bones about the position that he is taking. and for some it is a trade. a trade that has been working quite well as late. >> the show's sec reference. thank you very much. >> he could have never done that. never done what he just did. >> nailed it. just wait until you see how mcdonald's england views the typical american. it's almost as though we need to go back to war with england. >> stereo types for a reason. >> and inside the biggest bank heist in the history of the planet.
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biggest bank heist in the history of the world may have just taken place. but there's more to this story than meets the high. the senior correspondent, scott cohn is here, and he's been digging in. >> and he's looking confused, but he didn't see the prior segment. >> i'm confused because you're telling me i'm refined. if you hear "bank heist" and think of a masked gunman handing a note to a teller, you are so 20th century. this was a global cyberheist, targeting banks and third party credit card processors worldwide. and to get the money, all the
crooks had to do was walk up to the nearest atm. >> the eight defendants charged today are alleged to have fanned out across manhattan and other parts of this city to steal millions of dollars from hundreds of atms in a matter of mere hours. they were the nucleus of this worldwide cybercrime network. >> eight people have been indicted, seven are in custody. the eighth, authorities believe, was murdered last month in the dominican republic. how did they pull it off? authorities say they would hack into banks and third party credit card processors targeting those debit card accounts. they would raise the balances, eliminate the daily limit, and send out p.i.n. codes, withdrawing almost unlimited money while the hackers are still in the system, still in the computers. these are the atms they hit in
manhattan, $2.8 million just in new york, $45 million around the world in less than half a day. no gun, no mask. just computers, a lot of coordination, and a lot of mo e moxie. >> it's kind of scary when you feel that that could just be the tip of the iceberg, right? and there's potentially other organizations out there, potentially not on this scale, that could do similar things. >> the fact that they got into the systems of these big banks around the world. yes, they were able to target the prepaid debit card accounts, but authorities are now wondering what else were they able to get, what else can they get, and what else can similar kinds of criminals get. >> incredible story, scott cohn. call it proof the system works or it's flat broken, but texas paid by the nation's top earners are putting gunman back in the black. robert frank joins us with a feel-good story on uncle sam. >> and you heard it here first on this show last month. i predicted what i called the april surprise, a flood of tax dollars from the wealthy. and guess what, it happened.
a congressional budget office saying the government received $795 billion in income tax revenue through april. that was $132 billion better than expected. much of that, they said, was from high earners, shifting income into 2012 to avoid those tax hikes in 2013. the cbo said the shift was, quote, substantially greater than it expected. that's also true for states. california collected $4.5 billion more in income taxes than it projected. the good news is that all those tax dollars, they're shrinking the deficits. the federal budget deficit, expected to be more than $800 billion, but now it could fall below $700 billion. the bad news is that all this income that the rich moved into 2012 may not be repeated in 2013. you could read more on cnbc.com. >> all i'm going to say is thank goodness for all those millionaires and billionaires the, right? >> that's right. they're helping the deficit. >> well, everybody sold, like you said, all the dividends got hiked. that's probably while apple partly is down. >> the question with all these
great stock markets, all the wealth being created and all the incomes being generated at the top, the question is we might see that repeated somewhat in 2013. >> thank you very much, robert frank. coming up next, cider house rules. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business. and you...rent from national.
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for booze sfp 5.6% growth for wine. and 17% growth of kraft beer during the same span. onehottest brands of cider is crispin cider. the volume gain from one year ago, 207%. joe herron is here with us from crispin. it's a real pleasure. and even though you're from south africa, you're wearing a usa rugby jersey, so i like you. the u.s. one day will win. >> i'm all for that. >> let's talk about, why cider. i'm not a cider guy. i've never really had it. why has this taken off? >> i think four reasons we've saw it really taking off. four reasons, start, cider appeals quite equally to men and women. its gender neutrality -- >> does that appeal to men? i don't know i feel good with a cider in my hand.
>> that's because you don't play rugby, or you said you played rugby -- >> ten years, my friend. >> ten years, you've lost your touch. >> thanks for coming on, joe. >> so it is manly to drink a cider. >> it is very manly to drink cider. and in fact, a lot of men are drinking cider and you'll see a lot of wine drinkers drinking cider. it's a beer for wine lovers, a wine for beer lovers, and i think that works. we've seen the gluten free phenomenon that's taken off and, you know, ciders are gluten free. crispin is actually -- >> are they healthier than beer? >> i'm not going to talk about what's healthier. >> if i was going to choose, i like beer and i like ciders. and if i knew this was better for me and lower in calories, i would definitely choose the cider. >> cider is the only alcohol that has a nutrition facts panel only it. so i think you should look at the sugar load on cider.
there's only 10 grams of sugar in a crispin. i see you don't have a crispin -- >> you know what happens, joe, every time there's a up in market category, everybody rushes into it and it becomes sort of old hat and kind of goes away. >> it's delicious. >> i don't know when you came to this fine nation. do you remember a drink called zima? >> i do. >> is cider the next zima? >> cider is the original american drink. it's the breakfast of champions. cider has a lot going on. we have some terrific ciders from michigan to new york state. >> vermont. how do you take down woodchuck, the market leader? how you going to -- we're happy for everybody to do well in the cider business. it will float all the boats. we make a very different cider to woodchuck. we make ciders from fresh apple juice. >> and a market share of 2.7%, but fast growing. nice to see you.
>> eagles june 8th on nbc. >> thank you. let's check the market very quickly. dow down 34 points, nasdaq down 2. s&p 500 down 6.8%. that's the end of the show. perhaps time for hair of the dog. >> thanks for watching "street signs." "closing bell" coming up next. hi, everybody. as we enter the final stretch, welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. this market struggling to extend the winning ways as the dollar moves higher. hi, ty. >> i'm tyler mathisen, i'm in for bill griffeth at global headquarters this afternoon. we're on top of these markets and more on today's programming, including the banks are mad as heck and aren't going to take it anymore. banks fighting back and mobilizing against washington and a slaw of new regulations coming down the pi